The American Folk Art Museum in New York, which almost went out of business last year because of financial struggles, has appointed a new director, the museum announced Wednesday.

The board selected Anne-Imelda Radice, who recently served as director of the Institute of Museum and Library Services, a federal agency that supports  libraries and museums. She will start next week.

Struggling under a deficit and disappointing attendance, the museum was forced to close its 10-year-old flagship building in Midtown in 2011 and move to a smaller location near Lincoln Center in Manhattan. After considering dissolution and the transfer of its collections to another institution, the museum decided to continue operating with the help of financial infusions from trustees and the Ford Foundation....